Is an appointment letter mandatory?

Several state Shops and Establishments rules and certified standing orders require written terms or an appointment order. Whether it is mandatory for a given location depends on that state's rule, so check it. In practice every employer should issue one.

Can terms in the appointment letter be changed later?

Material changes, such as pay, designation or location, should be made in writing and acknowledged by the employee. Changes to service conditions for workmen can also attract notice requirements under industrial law.

Should the appointment letter repeat the full policies?

No. Refer to the policies by name and state that they form part of the terms as amended from time to time. Make sure the employee has access to them.

Letter template

Appointment letter format with full employment terms

The appointment letter is the written contract of employment. This appointment letter format sets out probation, pay, hours, leave, notice and conduct terms in one signed document.

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When it is issued and by whom

It is issued on the date of joining or shortly after, once documents have been verified. HR prepares it and an authorised signatory signs it. The employee signs a duplicate copy, which goes into the personnel file.

Some states' Shops and Establishments rules and some standing orders require written particulars of employment to be given to the worker. The format and timing vary by state, so check the rule that applies to each location.

What it must contain

Employee code, designation, grade, department and date of joining.
Remuneration with a reference to the salary annexure.
Probation period and how confirmation is communicated.
Working hours, weekly off and reference to the leave policy.
Notice period during and after probation, and whether pay in lieu is allowed.
Transfer clause, confidentiality, intellectual property and acceptable use.
A statement that company policies, as amended, form part of the terms.

How it differs from the offer letter

The offer letter invites the candidate to join on headline terms. The appointment letter governs the relationship once they have joined. If the two conflict, the later, signed appointment letter usually prevails, so make sure the pay and designation match exactly.

Watch for itAvoid copying non-compete clauses from foreign templates. Post-employment restraints are generally unenforceable in India; confidentiality and non-solicitation wording is the safer focus. Have your adviser review any restraint clause.

Template

The template, ready to adapt

Replace everything in [square brackets]. Have your own legal or HR adviser review the final wording for your organisation.

Template

[COMPANY NAME]
[Registered office address] | [CIN, if applicable] | [Phone] | [Email]

Ref: [HR/APPT/YYYY/NNN]
Date: [DD Month YYYY]

[Employee full name]
Employee code: [Code]
[Address]

Subject: Letter of appointment

Dear [Employee first name],

With reference to our offer letter dated [DD Month YYYY] and your acceptance of it, we are pleased to appoint you as [Designation] in [Grade/Band] in the [Department] department with effect from [Date of joining], on the following terms.

1. Place of work: You will be based at [Office address]. [The company may transfer you to any of its offices, departments or group companies in India as business requires, as per its transfer policy.]

2. Remuneration: Your annual cost to company will be Rs. [Amount], as detailed in Annexure A. Salary is paid monthly by bank transfer, subject to applicable statutory deductions and income tax.

3. Probation: You will be on probation for [N] months from your date of joining. On satisfactory completion, your confirmation will be communicated in writing. [The probation period may be extended as per the company's probation policy.] Until you receive written confirmation, you will continue to be on probation.

4. Working hours: Your working hours will be [hours], [days] a week, with [day(s)] as weekly off, subject to the company's attendance policy.

5. Leave and holidays: You will be entitled to leave and holidays as per the company's leave policy in force from time to time.

6. Notice period: During probation, either party may end employment by giving [N] days' written notice. After confirmation, the notice period will be [N] days/months. [The company may, at its discretion, accept pay in lieu of notice or waive part of the notice period, as per the notice period policy.]

7. Confidentiality: You will not, during or after your employment, disclose any confidential information about the company, its clients or its employees, except as required for your work or by law.

8. Intellectual property: All work products created by you in the course of your employment will belong to the company.

9. Conduct: You will comply with the company's code of conduct and all policies in force from time to time, which form part of these terms.

10. Separation: Your employment may be ended [as per the terms of your appointment, the company's policies and applicable law / standing orders]. On separation you will return all company property and complete the exit formalities.

11. Accuracy of information: If any information or document you have provided is found to be incorrect, the company may take action [as per its policies].

Please sign and return the duplicate copy of this letter as a token of your acceptance.

We welcome you to [Company name] and wish you a rewarding career with us.

Yours sincerely,
For [COMPANY NAME]

[Authorised Signatory]
[Designation]

Enclosure: Annexure A, Salary break-up

ACCEPTANCE
I have read and understood the terms of this appointment and accept them.

Signature: ____________________
Name: [Employee full name]
Date: [DD Month YYYY]

FAQs

Questions about this page

Several state Shops and Establishments rules and certified standing orders require written terms or an appointment order. Whether it is mandatory for a given location depends on that state's rule, so check it. In practice every employer should issue one.
Material changes, such as pay, designation or location, should be made in writing and acknowledged by the employee. Changes to service conditions for workmen can also attract notice requirements under industrial law.
No. Refer to the policies by name and state that they form part of the terms as amended from time to time. Make sure the employee has access to them.

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Where to go next

When it is issued and by whom

What it must contain

Employee code, designation, grade, department and date of joining.

Remuneration with a reference to the salary annexure.

Probation period and how confirmation is communicated.

Working hours, weekly off and reference to the leave policy.

Notice period during and after probation, and whether pay in lieu is allowed.

Transfer clause, confidentiality, intellectual property and acceptable use.

A statement that company policies, as amended, form part of the terms.

How it differs from the offer letter

[COMPANY NAME] [Registered office address] | [CIN, if applicable] | [Phone] | [Email] Ref: [HR/APPT/YYYY/NNN] Date: [DD Month YYYY] [Employee full name] Employee code: [Code] [Address] Subject: Letter of appointment Dear [Employee first name], With reference to our offer letter dated [DD Month YYYY] and your acceptance of it, we are pleased to appoint you as [Designation] in [Grade/Band] in the [Department] department with effect from [Date of joining], on the following terms. 1. Place of work: You will be based at [Office address]. [The company may transfer you to any of its offices, departments or group companies in India as business requires, as per its transfer policy.] 2. Remuneration: Your annual cost to company will be Rs. [Amount], as detailed in Annexure A. Salary is paid monthly by bank transfer, subject to applicable statutory deductions and income tax. 3. Probation: You will be on probation for [N] months from your date of joining. On satisfactory completion, your confirmation will be communicated in writing. [The probation period may be extended as per the company's probation policy.] Until you receive written confirmation, you will continue to be on probation. 4. Working hours: Your working hours will be [hours], [days] a week, with [day(s)] as weekly off, subject to the company's attendance policy. 5. Leave and holidays: You will be entitled to leave and holidays as per the company's leave policy in force from time to time. 6. Notice period: During probation, either party may end employment by giving [N] days' written notice. After confirmation, the notice period will be [N] days/months. [The company may, at its discretion, accept pay in lieu of notice or waive part of the notice period, as per the notice period policy.] 7. Confidentiality: You will not, during or after your employment, disclose any confidential information about the company, its clients or its employees, except as required for your work or by law. 8. Intellectual property: All work products created by you in the course of your employment will belong to the company. 9. Conduct: You will comply with the company's code of conduct and all policies in force from time to time, which form part of these terms. 10. Separation: Your employment may be ended [as per the terms of your appointment, the company's policies and applicable law / standing orders]. On separation you will return all company property and complete the exit formalities. 11. Accuracy of information: If any information or document you have provided is found to be incorrect, the company may take action [as per its policies]. Please sign and return the duplicate copy of this letter as a token of your acceptance. We welcome you to [Company name] and wish you a rewarding career with us. Yours sincerely, For [COMPANY NAME] [Authorised Signatory] [Designation] Enclosure: Annexure A, Salary break-up ACCEPTANCE I have read and understood the terms of this appointment and accept them. Signature: ____________________ Name: [Employee full name] Date: [DD Month YYYY]